701—254.16(453A) Inventory tax. All persons required to obtain a permit under Iowa Code section 453A.13 as distributors shall take an inventory of all cigarettes and little cigars in their possession prior to delivery for resale upon which the tax has been affixed and all unused cigarette tax stamps and unused metered imprints in their possession at the close of business on the day preceding the effective date of an increase in the tax rate.
Persons required to take an inventory shall remit the tax due on all cigarette stamps or metered imprints and all cigarettes and little cigars with revenue affixed in their possession prior to delivery for resale within 30 days of the inventory date. The tax is equal to the difference between the amount paid for cigarette stamps or metered imprints purchased prior to the tax increase and the amount that is to be paid for cigarette stamps or metered imprints purchased after the tax increase.
In computing the inventory tax, any discount allowed or allowable under Iowa Code section 453A.8 shall not be considered.
The inventory tax is applicable only when there is an increase in the tax rate. See rule 701—255.11(453A) for an explanation of whether a refund is allowable when there is a decrease in the tax rate.
This rule is intended to implement Iowa Code sections 453A.6, 453A.40, and 453A.43.
[ARC 6508C, IAB 9/7/22, effective 10/12/22; Editorial change: IAC Supplement 10/18/23]